(Paris) Stock markets are welcoming the latest inflation figures in the euro zone and the United States published on Friday, which showed a stronger than expected slowdown in the rise in prices.
Wall Street opened slightly higher: the Dow Jones rose 0.53%, the S
As throughout the week, European stock markets were well oriented: Paris rose by 0.83%, Milan by 0.44%, Frankfurt by 0.74%. Over the first three months of the year, they all gained more than 12%.
London showed a gain of 0.27% but only 2.5% over three months.
After the start of the session around the balance in Europe, the markets progressed with, in particular, the publication of the annual inflation rate for the euro zone. It fell in March for the fifth consecutive month, to 6.9% year on year, after 8.5% in February, thanks to the lull in energy prices, according to Eurostat. Analysts had expected 7.1%.
Corrected for volatile energy and food prices, so-called “core” inflation, however, rose further to 5.7% year on year in February.
A figure in line with estimates which “does not disturb the markets today”, according to Christophe Boucher, chief investment officer of ABN AMRO Investment Solutions.
“Markets continue to expect 25 basis point hikes at the next two meetings” of the European Central Bank (ECB), “with slightly higher odds,” he adds.
As for the PCE index, the inflation indicator favored by the American central bank to calibrate its monetary policy, it slowed more than expected by analysts polled by Bloomberg, to 5% over one year, and to 0.3% over a month.
Another positive point for the evolution of inflation according to the participants, consumer spending has stabilized (0.2%).
On the other hand, “the path to 2% is still long and the macro / micro could be ‘damaged’ before reaching it”, underlines on Twitter Alexandre Baradez, analyst of IG France.
A dilemma which is transcribed on the bond market, where the two-year US rates, the most sensitive to the monetary policy of the central banks and to the short-term outlook, hardly varied.
The yield on US 2-year debt was worth 4.11%, down from 4.12% at Thursday’s close. The 10-year equivalent fell to 3.52% against 3.55% the day before.
The company specializing in the launch of small Virgin Orbit satellites, in difficulty after the failure of a space mission, will lay off 85% of its employees, or 675 people according to a document published on the site of the American Stock Exchange Constable (SEC ).
Virgin Orbit shares fell 40% in New York after falling 16% on Thursday.
In mid-March, the company had suspended its operations, the time to conduct discussions on possible sources of financing and to explore strategic opportunities. She had indicated a few days later to resume her activity.
Oil prices were rising, in line with the trend of the week: a barrel of Brent North Sea was worth 79.77 dollars (0.63%) and US WTI was worth 78.33 dollars (1.29%) around 9:45 a.m. (Eastern time). In five days, they took over 6% and 8% respectively.
The euro fell 0.18% to $1.0885, and bitcoin rose 1.04% to $28,445.
